By Dhirendra Tripathi

Investing.com – Tempur Sealy stock (NYSE:) plunged 17% Tuesday after the mattress-maker’s fourth-quarter revenue and profit fell short of estimates.

Fourth quarter net sales increased 29% to $1.36billion. This is the tenth quarter in a row of double-digit sales growth.

Covid-related expenses and Dreams’ acquisition in the U.K., a specialist bed retailer, caused margins to fall. Tempur stated that Dreams’ international margins are lower than their historical margins because it sells a wide range of products at different price points. International sales also increased 82% by the purchase, rising to $298million.

North America’s sales increased 19% and reached $1 billion. A rise in wholesale channel sales was due to broad-based demand among its retail partners. Direct channel sales also rose because of growth in the company’s owned stores.

Tempur anticipates a profit per share of between $3.65 to $3.85 for the current fiscal year on sales growth rates of 15%-20%. In 2021, net sales were $4.93 trillion.

Although profit per share increased by more than 31% to 88 cents in the fourth quarter, it was still below expectations.